Tax filing is an essential part of financial activities for both businesses and individuals, ensuring transparency and compliance with the Law. However, with the diversity and constant change of tax regulations, mastering the regulations and related obligations is more important than ever. This article helps you summarize the basic regulations and support for tax filing, providing ways that legal advice can support you in this process.
What is tax declaration? Why do I have to declare tax?
Tax declaration is the process of declaring information related to income, expenses, and other tax obligations of an individual or business to the tax authority. Through this, the taxpayer informs about his/her financial situation so that the tax authority has a basis to calculate the amount of tax payable.
Understanding, tax declaration support Proper legal compliance not only helps individuals and businesses avoid legal risks but also contributes to the sustainable and transparent development of the economy. Specifically:
- This is one of the main sources of revenue for the state budget, used to invest in public works, socio-economic development, national defense, security…
- Ensure fairness in contributing to society. Every individual and organization has the obligation to share the financial burden of building the country.
- Help tax authorities grasp the production and business situation of enterprises, thereby having appropriate support policies.
- Prevent tax evasion and tax fraud, ensure transparency in business activities.
- Legal basis for determining tax obligations of each organization and individual and is the basis for tax authorities to conduct inspections and audits.
Who is required to file taxes?
Tax declaration is a legal responsibility of all individuals and organizations with income in Vietnam. Below are the main subjects that must declare taxes:
Individuals: Including Vietnamese citizens and foreigners residing and working in Vietnam must declare personal income tax (PIT):
- Salary, wages
- Business
- Invest
- Property for rent
- Inherit
- …
Organization: Includes types of businesses such as:
- Limited liability company
- Joint Stock Company
- Cooperative
- Other economic organizations
- Non-governmental organizations
All these organizations are required to declare corporate income tax (CIT), value added tax (VAT) and other taxes depending on their business activities.
Other units:
- State agency
- Public service unit
- …
Tax declaration is the legal responsibility of every individual and organization.
Taxes to be declared in Vietnam
Vietnam has a relatively diverse tax administration system to ensure revenue for the state budget. Below are some common taxes that individuals and organizations regularly have to declare:
Direct tax
Direct tax is a tax that is directly applied to the income or assets of individuals or organizations. Taxpayers must self-declare and pay taxes based on their income or assets.
- Personal income tax (PIT): Applies to all individuals with income from sources such as salary, business, investment, property rental…
- Corporate income tax (CIT): Applies to organizations and businesses that make profits from business activities.
- Land tax: Applies to land users, including residential land, production land, and non-agricultural land.
Direct tax is a tax that is applied directly to income or property.
Indirect tax
Indirect taxes are taxes that are included in the price of goods and services and are usually collected from consumers through sales transactions. Consumers do not pay taxes directly to the tax authority but through payments to businesses.
- Value Added Tax (VAT): Applies to most goods and services produced, traded and consumed domestically.
- Import tax: Applied to goods imported from foreign countries to Vietnam.
Other taxes
In addition, the Law also stipulates a number of other taxes such as:
- Resource tax: Applicable to organizations and individuals exploiting and using natural resources.
- Export tax: Applies to goods exported abroad (less common than other taxes).
Eagle Law – Professional tax declaration support and consulting
When faced with tax issues, it is important to seek support from legal experts. Dai Bang Law specializes in providing tax declaration support services, helping you fully fulfill your tax obligations and effectively exploit your legal rights.
Contact Dai Bang Law today to receive dedicated tax legal advice and support from leading experts in the field.
Contact information:
EAGLE LAW
- Website: https://luatdaibang.com/
- Email: contact.luatdaibang.com@gmail.com
- Hotline: 0979923759
- Address: 720A Dien Bien Phu Street, Vinhomes Tan Cang, Binh Thanh District, Ho Chi Minh City